A new Open Banking solution is being piloted with the aim to facilitate direct payments between businesses and customers in real-time, providing a lower-cost alternative to direct debit and standard credit.
Open Banking fintech Ordo has teamed up with Eviden, an Atos Group business which specialises in cloud, big data and security, and blockchain company ByzGen, to launch the new payment platform.
Organisations, such as utility providers, can use the new “intelligent flexi-payment” platform to collect regular bill payments faster and at a lower cost than card-based payments.
The platform uses Ordo’s variable recurring payments (VRP) solution, which is powered by Open Banking, to allow customers to authorise payments directly from their bank accounts to businesses on a recurring basis.
“Open Banking-powered solutions offer a lower cost-per-transaction to process than cards and automate account reconciliations to reduce administration costs. For large providers, the reduction in transaction fees alone will lead to millions of pounds in savings,” said James Sharpe, sales director digital native business at Eviden, Atos Group.
“This marks the beginning of a revolution in how money moves. As UK VRP regulation evolves, fintech innovation will accelerate, replacing legacy systems with direct, secure, and flexible bank-to-bank transfers.”
Eviden’s Open Banking solution will be extended to full deployment with customers once VRP has been fully implemented in the UK, as anticipated in 2025.
The platform has been designed to assist vulnerable customers, by encouraging “improved payment habits”, according to Fliss Berridge, director of Ordo.
A regulated consented sign-up process overseen by the Financial Conduct Authority enables the system to monitor customers’ finances, while harnessing AI, including conversational AI-powered capabilities, to “proactively” identify, support, and guide consumers with personalised payment plans.
The new solution is able to tailor payments to each customer’s financial situation, rather than adhering to a fixed date, allowing contributions from various funding sources to promote greater affordability.
In turn, this allows utility companies, social housing providers and local authorities to accommodate customers’ financial situations more effectively, while avoiding chasing failed direct debits, which can be time consuming and costly.
Eviden’s AI platform monitors customer bank account data to recommend the most appropriate payments frequency during any given month, and also supports multiple payments when customers have funds available, reducing the risk of customers falling into arrears.
Finally, the AI platform allows contributions from friends or family members towards bills, and accepts multiple payees for a single payment, enabling flexibility for houses of multiple occupancy, such as student accommodation.
Fliss Berridge, co-founder and director, Ordo
“Eviden’s AI-driven platform identifies financial vulnerabilities and encourages practical steps to avoid arrears,” said Ordo’s Berridge.
“Our joint solution is opening doors to a new era of convenience, propelling forward customer-centricity with empathetic collections and operational efficiency, and is perfectly timed with today’s regulatory landscape.”
ByzGen’s blockchain solutions have been integrated into Eviden’s new payments platform to improve data security, compliance, and efficiency, while limiting bias.
Marcus Ralphs, chief executive officer of ByzGen, added: “ByzGen’s contribution supports the broader goals of the initiative, which seeks to provide more flexible payment options for consumers, particularly in sectors like utilities.
“This integrated approach not only streamlines payment processes but also adapts to customer needs, particularly for the financially vulnerable.”
Further reading: Ordo joins charity group to offer donations via Open Banking
